Trust Tairāwhiti recorded strong operating performance in the 2026 financial year with higher revenue and assets, but increased borrowing and lower community distributions.
The recently released Trust Tairāwhiti Annual Report includes a financial report for the trust’s consolidated Trust Tairāwhiti Group for the year ended March 31.
It shows community distributions reached $8.8 million, benefiting schools, sports facilities and marae through the trust’s solar project.
Distributions were down from almost $10m the previous year, which the trust attributed to project delays and several multi-year projects expected to be completed in the coming financial year.
The report revealed revenue increased 4.2% to $61.6m, while operating surplus rose from $3.7m to $14.4m.
The one-off sale of 50% ownership in Eastland Generation in 2025 influenced its net surplus, which fell from $57.9m to $12.9m.
The group’s asset value increased by more than $54m to $785.4m.
The highest-value assets included $195m in joint venture investments and nearly $33m in investment properties.
Borrowings and Business Investments
The most significant balance sheet change was a $30m increase in borrowings.
After repaying a $20m loan, the trust entered a new $75m agreement and drew $50m in December for Eastland Generation to invest in Kawerau-based geothermal plant TOPP2.
The report stated Tairāwhiti Investments, the trust’s investment arm, will repay the debt within the next three years.
It is secured against properties owned by Eastland Port, Gisborne Airport and Eastland Investment Properties.
The report also noted $22.5m was on loan through the Crown Provincial Growth Fund to the trust’s economic development company Prime SPV Limited for sawmill upgrades and development of a wood cluster heat plant.
Among other transactions, port-based bark removal business Northland Debarking Limited was sold, resulting in a $4m gain and six Hirini St properties were transferred to Ngāti Oneone under a Kawenata (Statement of Intent).
The titles were transferred for $1, with an estimated loss on disposal of $1.9m.
The trust recorded a $2m share of profit from Eastland Debarking, while investments in honey extraction facility Porou Miere Limited and wood processing business WET Gisborne recorded losses of approximately $20,000 and $1.3m respectively.
Trust chief executive Doug Jones said returns from investments were commercially sensitive, but “investments must be supported by financial analysis and be expected to deliver returns that justify their cost and risk”.
During the financial year, the Tairāwhiti Investments board worked with the trust to review the group’s commercial investment approach, he said.
“A key outcome has been a move towards a more active ownership model by the trust.
“This means taking a clearer and more deliberate approach to setting expectations, monitoring performance, managing capital and ensuring the group’s commercial investments are aligned with the trust’s long-term objectives,” he said.
Staff salaries
The 2025 report revealed three employees received salaries between $1.4m and $3.41m.
In 2026, personnel and wage expenses decreased slightly to $13.5m and $12.9m respectively.
A list of the highest-paid employees showed the highest salary decreased by around 78.3%, falling to between $730,000 and $739,999.
Forty-eight staff members earned more than $100,000, including eight who earned between $100,000 and $109,999, and another eight who earned between $120,000 and $129,000.
Trustee fees remained largely unchanged, totalling more than $371,700.
Trustee chair David Battin was the highest paid, receiving $86,000, while Gisborne Mayor Rehette Stoltz was one of three board members to receive the second-lowest remuneration of $45,000.
Total fees for parent and subsidiary company directors totalled nearly $565,800, with the highest-paid director, Paul Silk, receiving $137,300.
LDR is local body journalism co-funded by RNZ and NZ On Air.
